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For a few years now I've been writing about the impending collapse of the European and American financial systems (which are basically one and the same) due to massive fraud.  On November 1, 2011 I wrote this diary: The Financial System is Insolvent Due to Fraud, and it Will Collapse:

(My take is that) There is going to be a massive, shocking, catastrophic world-wide financial collapse, and the criminal international plutocracy is going to use it as a blunt tool or "shock doctrine" to further enslave the populations of Europe and the United States.
As time has passed we've learned of secret loans in the hundreds of billions of dollars provided by the FED to the criminal TBTF banks in the U.S.  That has only delayed the inevitable collapse, since by now it is becoming obvious that these banks are lying about their books, and in reality have massive liabilities they are unable to cover, resulting from outright massive fraud.

But as I continue to monitor the situation, I'm starting to see a clearer picture of the actual intentions of this criminal financial cartel, as it relates to the insane push for austerity.

I've known all along that there had to be some sort of nefarious angle for this incredibly coordinated effort by the criminal financial cartel to push austerity in Europe, and the United States.  In fact, it has actually crossed my mind that at the end of the day the actual intentions are to push down hard on the workers in Europe and the United States in order to extract more productivity, value, profit, and wealth.

Now I'm starting to get confirmation on that assumption from multiple sources.  In a Financial Times article about a eurozone two-day summit published on December 12, 2012, German chancellor, Angela Merkel, is quoted as follows:

Short of full treaty change, Germany is strongly backing a proposal for the European Commission to sign “bilateral contracts” with each eurozone member state, setting out agreed plans for structural reforms to boost competitiveness, including labour market and tax reforms.

Ms Merkel wants agreement on the parameters to be used to design such contracts, using countries such as China, India and Brazil as benchmarks for global competitiveness.

In other words, the idea is to level the playing field by lowering the wages and working conditions of workers in Europe (and, I argue, in the U.S. as well) to those prevailing in Asia and Latin America.

As this happens, these governments (both the U.S. and Europe) continue to infuse hundreds of billions of dollars into these zombie banking institutions.

This is the plan folks.  That's why I find it frustrating when people here in the U.S. get caught up in debating issues like the national debt, "too much government spending," and "entitlement" reform, as if there was a shred of truth about the purported intentions to improve the economy and curtail national debt to protect future generations.

It has absolutely nothing to do with those reasons.  As the imposition of austerity proceeds unmolested (because the public can't unite effectively in order to oppose and resist), the stress in the population increases exponentially.  In the United Kingdom, they are reporting the highest rate of suicide due to financial stress, ever.  This is happening all over Europe.

Greece is a frightening example of the danger we could face in the U.S. In a video interview by The Real News Network, University of London economist Costas Lapavitsas talks about the dire consequences the brutal imposition of austerity has had on the Greek population:

...the recession in the country is getting deeper and deeper. And this is now mutating into a major social and humanitarian crisis.
So the combination of these factors has actually led to a certain retreat of struggle, a certain—the movement in a sense has taken a few steps back. But I stress this has gone together with a deepening of social discontent, of social crisis, of a sense of society falling apart, and of a sense of national humiliation. This is extremely dangerous politically, extremely dangerous politically, because this is the type of climate in which the extreme right can also thrive, as you can imagine.

Perhaps I can put it differently. Greece is caught in a trap, similar to many other countries across the world, but a trap made much worse because of membership of the Monetary Union. The powers that be are slashing wages, are imposing austerity, and they think that by doing that they are rejuvenating the economy, they are creating a lean and mean economy, and at the end of this, Greece is going to surge ahead.

Nothing like that's going to happen. Society is being trapped. And as that happens, we're seeing phenomena of the 1930s emerging, phenomena of social disruption, anger, and despondency, and extreme willingness to resolve to violence.

I've also been arguing that there are a lot of similarities to the 1930's in what's happening today in the U.S., where you basically have a vast financial criminal cartel acting with total impunity since the regulatory framework was taken down.

If you pay close attention, the Republicans and many prominent people on the extreme right, like Wayne LaPierre, also expect the economic system to collapse.

Meanwhile, President Obama is leading this country to financial ruin, borrowing over a trillion dollars a year for phony “stimulus” spending and other payoffs for his political cronies. Nobody knows if or when the fiscal collapse will come, but if the country is broke, there likely won’t be enough money to pay for police protection. And the American people know it.

Hurricanes. Tornadoes. Riots. Terrorists. Gangs. Lone criminals. These are perils we are sure to face—not just maybe. It’s not paranoia to buy a gun. It’s survival. It’s responsible behavior, and it’s time we encourage law-abiding Americans to do just that.

- Wayne LaPierre - 2/13/2013

Yes, I know, he wants to scare people so his gun industry bosses can sell more guns, but this theme is being repeated by many Republicans in Congress, where they make allusions to an impending financial system collapse, of cities not having enough money to hire police officers, etc.

Here's my take, and I know some may see this as highly speculative, but I'll stand by it: There will be a continuation of the imposition of more austerity measures, as well as draconian, restrictive, and punishing laws targeting the population.

This will continue to increase the stress in the citizenry, which will likely lead to more suicides, crimes, and violence.  This in turn will create the conditions for the imposition of an increasingly repressive police state.  In this environment, armed right wings thugs, armed to the hilt, could become the irregular shock troops for the billionaires behind this carefully implemented strategy.

Please take a few minutes to watch these two videos.  Notice a key question asked by Senator Elizabet Warren, where she asked whether the banks were trading at below book-value because their financial disclosures may not be accurate.

What to do about it all?  If the banks do indeed implode, the population should not accept any further austerity measures.  The financial system (or parts of it) should be nationalized and workers' pensions should be protected.

I think that the plan is that when the banks collapse, then the Republicans will start yelling to the top of their lungs "We're broke, we're broke.  It's Obama's fault.  Now we have to cut all social safety net programs..."

This is typical "Shock Doctrine" stuff.  Once the dust is settled, the banks get an infusion of trillions of dollars, and the population ends up enslaved and dispirited.

I see these things as very real dangers.  I don't see it as happening by chance; I think it's being carefully planned.

If millions of people rose up in protest and resistance now, we may have a chance to turn things around, but if the population remains as eerily passive as it is now, we'll be heading towards a dystopian world--a Corporate State.


Aren't you so proud of our banking regulators?

Originally posted to Ray Pensador on Fri Feb 15, 2013 at 12:05 AM PST.

Also republished by In Support of Labor and Unions and ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement.

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